What's the Market Yellen About?

Paul Vigna and Justin Lahart discuss market reaction to the withdrawal of Larry Summers, and Julie Steinberg looks at the bands of Lehman Brothers.

This transcript has been automatically generated and may not be 100% accurate.

... in mm mm ... stocks around the world rallied yesterday on news that Lawrence Summers to take himself out of the race ... to become the Federal Reserve Chairman his he was going on today that I'm growing quite sharply but still up even today the question though that is worth asking is ... why ... morning welcome to MoneyBeat when it comes to providing monetary policy ... it isn't clear that to be much of a difference between Lawrence Summers and Janet Yellen ... but the market seemed to think there was Justin Langer wrote about this for her on the Street ... I'm ... there's an instant a Justin's I think you're right ... I ... don't think it was as big a split between them as a mark to proceed ... no I think I think that people really just sort of thing they wanted to be different right everybody wants to be different so ... you created differences and ... I'm even even with the juice if you look at the soft that that that Larry Summers is written in said and what Janet Yellen is written in said ... it's not a lot of there's not a lot of daylight between the centrist Democrats right ... well and anything about it too I mean ... we were to find out tomorrow whether the Fed was for the tapering process that whole thing ... but when ever they stored ... Ben Rene Kyi is pretty much set the Fed policy ... due to taper QE three which even in the low for a long time unless things change ... was any real evidence that Larry Summers will come in and really upended all that ... no not really and I think that you know people were killing off some things to be said for example ... he was skeptical ... of cuties effect ... but this is something that the Fed has also come around to to write ... the don't think the Kiwi is what has kept long-term rates down ... they think that what really matters is committing to keep short-term rates down for very long time ... you know ... what they have is is is a problem is that this is of the signaling problem ... if you won one week two we it seems like ... well okay that's the first step in eventually taking down short-term rate so ... their job right now ... is to try to ongoing QE ... and at the same time say ... is this is me anything about short-term reference this is what's called the ... the so-called forward guidance that with the consent of the buzzword is now that we're going to keep rates low for X number of years ... that isn't going and I wasn't going to change under Yellen Lawrence Summers or or whomever you know right I mean it was possible is even a meal filed by attorney and co owner Fergus an are you know Syd Fischer ... I think it did in this is ... when you when you look at some of these ... acted in a economists and Indian policy economists think they are largely agreement they think that ... that unemployment is a really big problem ... the really worried about long-term unemployment and still Roche in which to do long-term damage the economy ... and they want ... employ me to get back up ... and they are really committed to doing that India don't care ... if inflation goes up a little that a bomb in a so-called hard ... to stir around we saw yesterday not just U S stocks globally everything seemed to rally ... is the more more of the sort of market gains to trade the reason to make that rate ... I mean you could've been riding in a lot of it I think was you know if you ask people they might is that while I actually don't think that Larry Summers would of been more hawkish than Janet Yellen but I think that other people thought that touches turns into syrup circular game yet there are a dozen good stuff thank you very much ... and we will of course find out tomorrow what the Fed plans to do for the rest of this year next year ... the decision on interest rates will be covering it live at one fifty five p m Eastern time ... and then we'll carry Ben burn Anqi news conference ... at two thirty p m Eastern time ... and when we come back some of the Lehman Brothers' employees and get the bed back together ... I ... I ... Apple and the good ol' Lehman Brothers' employees and you hear the whine of the Lehman Brothers how bands of what basil be getting together ... tonight ... at a club in New York City to the ... it commemorates the event to ... commemorate the right word but the fifth anniversary Lehman Brothers ... all these guys are flying out there to the world a get together tonight to stick on the ... Seine were were still here exactly as Julie Steinberg at the store and cyan GDC crept into how long that I'm dead ... that is the five-year Union and like he said that I exactly celebrating the end of Lehman read the are celebrating a new friendship is that they had been a lot of the sky still keep in touch and are still playing together five years later the ... house and the powder from these guys get together and you get on the story ended here but it ... sure aam and so I was I've been doing some leading Padres and I is ... looking in the Lehman linked into some mines some of the employees have been talking about this for union happening to me ... they got in touch with when the organizers and started telling me that ... they had had a couple band at Lehman one of their bands formed after September love and ... I'll be Manduca either headquarters at will financial center teachers the city right there on top of each other ... and when I overheard another guy talking about the band ... may all ... this just came together to form one and even playing for the had been playing for years ... and it became this informal recruiting tool like finance a school that still ok said in a work in investment banking we won't deplete your soul will actually get a chance to grill but the guys ... and now these guys have they done to diversify new jobs in finance are the working now were they doing interesting so the lead organizer of the band can only Zaki has left the industry and now he works at a firm that invests in digital music related startups says he is very into music also into math that's worth it ... on some the other guys one still works The Parkway is one works on the at his own to start his own asset management firms a lot of people still finance some of what the industry is just like the rest of Wall Street on what there was that the merger seen when that was the fifth O'Shaughnessy Asset yet that ... that you're going to this tonight I am to go to that time BB Kings on forty seconds of that ... on a gimme Ali ... the finale and is really are doing in Iraq right now to finance forty seven on it ... does this say anything of bow ... seeing him at Lehman Brothers itself the collapse of the changes on Wall Street ... or the in the lack of a new five-year Lee's guys ... are still together now coming together uniting that's a really good point fall ... so I've been talking a lot of people since the cops every man and this year especially with five years on people are eager to talk about their experience is one guy told me that they all bled out Lehman Greenfield war that color they all loved it ... it seems like a really close knit Grail mom across multiple function area ... across multiple practice areas of the firm's thinking a lot of people are really close ... so it speaks to a leg as the enduring lasting ... friendships that they hadn't and to think and you know they're eager to come together so it would be in there expecting a printer people tonight ... so ... we'll see ... not a panda that of an audience for but the house spans from a failed financial firm to the finale I noted that flowed into going with the notion they shouldn't ... be tequila for the marquee in forty seconds to write silly things have fun tonight thankful ... when we come back just because the stock is at a fifty two week I didn't need to sell it ... tactile be here to talk about that ... finding a value these days is become a harness on the stocks on ... summers inflation asset prices lot fifty two week highs and CEOs fifty two week highs new thing ... for ... me the Ashes for payment ... Jack how is here to talk about what to do in the stock hit a fifty two lead on a scare called obese guarantee scare Joseph A dear to me ... I mean it's an actual thing though right you look at stock the stock is up thirty forty percent and say you know ... is is a good time to get in is the time to sell what to do what should you look for is actually the study on this published in the in the Journal of Finance so years back and in love with stocks hitting fifty two week highs and found that they're more likely than not to outperform the market over the next several quarters why's that ... twelve years for the reason he said investors are reluctant to pay that high price than anything that makes people try away from a stock although them something to do with the fundamentals of the company could keep that stock cheaper than it deserves to be ... so you know that's not to say the war by every stock after visiting a new high ... on the nine yet to be careful because of it the market becomes slightest unease high momentum stocks can reverse pretty quickly but I tried it was I read a search for companies that are ... at ... a fresh fifty two week highs ... but how valuations are still reasonable sets for a cautious approach to momentum investing without three D show itself and to do ... so Owens Illinois I that's the great glass container specialist and big exposure to beer and wine basically in Wisconsin will come of glasses a saint in this town with a containerboard industry which is ... rapid consolidation ... and there are fewer players out there now but the ones are out there have better profit margins and ... we we did Barron's wrote about owns a one over the summer as the company is poised ... to re down with it with an economic recovery in Europe helping us from exposure there ... cutting costs ... to come economy we're not Guinea get much sales rose ... two percent sales growth forecast for next year but with fourteen percent earnings per share growth so ... you could get a YouNow significantly faster earnings growth in sales for our got what she did so in eleven times earnings ... the next one is verity inched in company Hillenbrand of them quite Anderson email they make funeral caskets rate though things have outrageous profit margins and so the cover has a stable ... stream of cash float comes map is very little growth the words Danone passively as is use that cash to invest in ... some industrial businesses and come as a make ... these machines that that we've never heard of they sold companies like Exxon Mobil life real life ... a diverse group of global crop is out there so has ... aam ... and a much more global revenue stream now and I'm better growth profile is tying its growth to the expanding middle class around the world and increased demand for energy that sort of thing so ... investors in the light of the stock is up big over the past year but still looks reasonably prices ten times earnings in the middle class has died ... so you can get ... but it is just awful ... ay ay ay ay less monthly household name gaseous and dinnerware wrote a lot of coal exposure there ... Barclays and analysis listened in on coal prices might from here that this stock is priced for a further ten to fifteen percent decrease in coal revenues next year Barclays and think of medical reviews be flat for the company next year ... if that happens you can see and I share price gains CSX ... next year ... Heidi get it for a two point three percent dividend way way ... on ... Arike ... checkout good stuff as always thank you very much at all ... that is if Ross on MoneyBeat comeback in use to Wendy Bounds on Lunch Break to talk about Twitter's IPO how could a row in the microblogging service I'm Paul beanie will see tomorrow ...